GARLAND, Texas - Massimo Group (NASDAQ: MAMO), a manufacturer and distributor of powersports vehicles and pontoon boats, announced today an expansion of its Garland, Texas manufacturing facility by 90,000 square feet. This expansion is part of a series of projects intended to support the company's growth in its motor and marine product lines.
The expansion brings the total size of the facility to 376,000 square feet, with dedicated space for Massimo Motor Sports and Massimo Marine. The company reported a significant increase in sales for both divisions, with UTVs, ATVs, and electric bikes, as well as pontoon boats, showing annual revenue growth of 32% and 38%, respectively, in 2023.
David Shan, Founder, Chairman & CEO of Massimo, stated that the expansion is aligned with the company's increased production needs due to growing sales. He also noted that it would enable Massimo to meet the high demand and consider introducing new product lines.
The Garland facility includes a design center, two assembly lines, a quality control bay, a large parts department, and over 30 loading docks. It also features a storage area for boats in Dallas, Texas. The site is responsible for the assembly, accessorization, and inspection of the company's inventory, which is imported from a network of manufacturers. The pontoon boats are entirely manufactured at this location.
Massimo Group, established in 2009, has a product range that encompasses utility UTVs, recreational ATVs, mini-bikes, and pontoon boats. The company is also developing electric versions of UTVs, golf carts, and pontoon boats.
The information in this article is based on a press release statement from Massimo Group.
InvestingPro Insights
Following the announcement of Massimo Group's expansion of their Garland, Texas manufacturing facility, recent metrics and analysis from InvestingPro provide a deeper insight into the company's financial health and stock performance. With a market capitalization of 156.11 million USD, Massimo Group is navigating the powersports and marine industry with a notable presence.
InvestingPro data highlights a robust quarterly revenue growth of 60.04% for Q1 2024, showcasing the company's strong sales momentum which is in line with the reported sales increase for their motor and marine product lines. This growth is supported by a solid gross profit margin of 32.25% over the last twelve months as of Q1 2024, indicating efficient cost management in production.
The stock's recent performance reflects a high level of price volatility, an InvestingPro Tip that investors should consider, especially in light of the stock's significant price movements: a 25.58% return over the last three months, coupled with a 25.58% year-to-date total return as of 2024. Despite the stock taking a hit over the last week, with an 8.03% decrease in price total return, the InvestingPro Fair Value estimate stands at 4.7 USD, suggesting potential upside from the previous close price of 3.78 USD.
InvestingPro Tips also indicate that Massimo's cash flows can sufficiently cover interest payments, and that its liquid assets exceed short-term obligations, which is reassuring for investors concerned about the company's financial resilience. Moreover, the company operates with a moderate level of debt, which can be an indicator of prudent financial management.
For investors looking to delve further into Massimo Group's financials and stock performance, InvestingPro offers additional tips. There are currently 9 more InvestingPro Tips available for Massimo Group, which can be accessed by visiting https://www.investing.com/pro/MAMO. Readers can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing even more comprehensive insights to inform their investment decisions.
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